Here's My Favorite Passive Income Investment

Core Insights - International stocks have become a favorable investment option in 2025, with the Vanguard International High Dividend Yield ETF returning 29.6% year to date, outperforming the S&P 500's 15.6% return [2][7] - The weakening dollar has contributed to the improved performance of international investments, making overseas holdings more valuable in dollar terms [8] Fund Overview - The Vanguard International High Dividend Yield ETF comprises 1,531 stocks from 40 countries, focusing on above-average dividend yields, with a current yield of 3.95%, significantly higher than the S&P 500's yield [4][7] - The fund's asset allocation includes approximately 42% in financials, with industrials, energy, and consumer staples making up an additional 24% [5] Valuation Comparison - The valuation gap between U.S. stocks and international stocks is notable, with the S&P 500 trading at around 29 times earnings compared to the ETF's valuation near 13 times for similar profit profiles [6]